AB 486 — Revises provisions governing the distribution of the governmental services tax. (BDR 43-978)

(ReprintedAssembly withBill amendmentsNo. adopted on April 24, 2017) FIRST REPRINT A.B.

486486–Committee ASSEMBLYon BILLNTransportation O.CHAPTER..........

486–C OMMITTEE ON T RANSPORTATION (O NB EHALF OF THE O FFICE OF FINANCE IN THEO FFICE OF THE GOVERNOR ) M ARCH 27, 2017 ____________ Referred to Committee on Taxation SUMMARY—Revises provisions governing the distribution of the governmental services tax.

(BDR 43-978) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegislativeLegiThe Counsel’sState Digest:of Nevada imposes a governmental services tax for the privilege of operating any vehicle upon the highways of this State.

(NRS 371.030) The Stateannual amount of Nevadathe imposesbasic a governmental services tax foris the4 privilegecents on each $1 of operatingvaluation anyof vehiclethe uponvehicle, as determined by the highwaysDepartment of thisMotor State.Vehicles, with an exception for certain trailers.

(NRS 371.030)371.040) TheExisting annuallaw sets forth depreciation schedules for determining the amount of the basic governmental services tax iseach 4year centsfor onusedUnder eachexisting $1law, a specified percentage of valuationthe proceeds of forthe governmental services tax, after certain trailers.deductions authorized for the Department, is required to be equally distributed to the State General Fund and the State Highway Fund.

(NRS 371.040)482.180, Existing482.182) lawThe setsremaining forthproceeds depreciation schedules for determining the amount of the basic governmental services tax is distributed to each yearcounty forin usedthis vehiclesState andbased establisheson apercentages minimumprovided tax.by law.

(NRS 371.060)482.181) Underservices existingtax law,proceeds ato specifiedbe percentagedistributed ofto the proceedsState ofGeneral theFund governmentaland servicesthe tax,Statel afterHighway certainFund deductionsto authorizedprovide that, for the Department,Fiscal isYears required2017-2018 toand be2018-2019, equally distributed to the State General Fund will receive 25 percent of the proceeds and the State Highway Fund.Fund will receive 75 percent of the proceeds.

(NRSEXPLANATION distributed– toMatter each county in thisbolded Stateitalics basedis onnew; percentages provided by law.

(NRSmatter 482.181)between Thisbrackets bill[omitted revisesmaterial] thoseis provisionsmaterial governing the portion of the governmental services tax proceeds to be distributedomitted. to the State General Fund and the State Highway Fund to provide that, for the Fiscal Years 2017-2018 and 2018-2019, the State General Fund will receive 25 percent of the proceeds and the State Highway Fund will receive 75 percent of the proceeds.

- *AB486_R1* – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

- 79th Session (2017) – 2 – 3.

For the purpose of calculating the amount of the basic governmental services tax to be distributed to the county school district, the taxes levied by each local government, special district and enterprise district are the product of its certified valuation, determined pursuant to subsection 2 of NRS 361.405, and its tax rate, established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1980, except that the tax rate for school districts, including the rate attributable to a district’s debt service, is the rate established pursuant to NRS 361.455 for the fiscal year beginning on July 1, 1978, but if the rate attributable to a district’s debt service in any fiscal year is greater than its rate for the fiscal year beginning on July 1, 1978, the higher rate must be used to determine the amount attributable to debt service.

- *AB486_R1* – 3 – 6.

The Department shall make distributions of the basic governmentalgov7.nmeAs servicesused taxin directlythis section:ly to county school districts.

7.

As used in this section:

5.21 percenLyon..................2.90percent Lyon..................2.90 percent Clark.............

22.54 perceMineral..............2.40percentMineral..............2.40 percent - 79th Session (2017) – 3 – Douglas...........

2.52 percenNye....................4.09percent Nye....................4.09 percent Elko ..............

13.31 percPershingpercenPershing ............7.00 percent Esmeralda.......

3.10 perceWashoe............12.24percentWashoe............12.24 percent Humboldt........Lander.............

8.253.88 percentpercentWhite White Pine.........5.66 percent Lander.............(2) For all other basic and supplemental governmental services tax received or collected by the Department, the amount attributable to each county based on the county of registration of the vehicle for which the tax was paid.

3.88 percent (2) For all other basic and supplemental governmental services tax received or collected by the Department, the amount attributable to each county based on the county of registration of the vehicle for which the tax was paid.

- *AB486_R1* – 4 – 2.

Except as otherwise provided in subsection 3, the amount required to be transferred pursuant to subsection 1 from the proceeds of the basic governmental services tax imposed on vehicles depreciated in accordance with:

- 79th Session (2017) – 4 – (7) Seven years, is a sum equal to 29 percent of those proceeds;

(3) Three years, is a sum equal to 18 percent of those proceeds;

Three years, is a sum equal to 18 percent of those (4) Four years, is a sum equal to 21 percent of those proceeds;

- *AB486_R1* – 5 – 3.

The amount required to be transferred pursuant to subsection 1 from the proceeds of the basic governmental services tax imposed on vehicles to which the minimum amount of that tax applies pursuant to paragraph (b) of subsection 3 of NRS 371.060 is a sum equSec.equal to 63 percent of those proceeds.

3.3Sec. This act becomes effective on July 1, 2017, and expires by limitation on June 30, 2019.

H3. - *AB486_R1*